Expanding into the Philippines is an exciting opportunity for businesses looking to access a skilled, English-speaking workforce while keeping operational costs low. The country has become a global hub for remote work, offering talent in fields like IT, customer service, digital marketing, and finance.
However, hiring employees in the Philippines comes with legal, financial, and administrative challenges. Companies must comply with local labor laws, tax regulations, and HR requirements, which can be overwhelming—especially for businesses without a legal entity in the country.
This is where an Employer of Record (EOR) becomes a game-changer. Instead of dealing with complex compliance, payroll, and HR tasks, businesses can partner with an EOR to legally employ workers in the Philippines—without setting up a local office.
Challenges of Expanding into the Philippines Without an EOR
When businesses decide to hire remote employees in the Philippines, they have two options:
- Set up a local entity – This involves company registration, tax compliance, payroll setup, and labor law adherence. It’s costly, time-consuming, and requires ongoing management.
- Partner with an EOR – The EOR takes care of legal employment, payroll, taxes, and compliance while the company maintains full control over daily work and business operations.
Without an EOR, companies may face the following challenges:
- Complex legal requirements – The Philippines has strict labor laws, requiring proper contracts, social security contributions, and tax deductions.
- Tax and payroll compliance risks – Mismanaging local payroll and taxes can result in penalties or legal disputes.
- HR and administrative burden – Managing employment contracts, benefits, and attendance tracking for remote workers can be overwhelming.
- Employee retention issues – Without proper engagement and support, businesses may struggle to retain top Filipino talent.
For companies looking to expand quickly, reduce costs, and avoid compliance risks, working with an EOR like Remotify is the most efficient solution.
How an Employer of Record (EOR) Works
An EOR legally employs remote workers on behalf of a company while handling all HR, payroll, and compliance-related responsibilities. This allows businesses to hire Filipino professionals seamlessly without the hassle of setting up a local entity.
An EOR provides:
Legal Compliance – Ensures all employment contracts, tax obligations, and labor law requirements are met.
Payroll Processing – Handles salary payments, tax deductions, and government-mandated benefits.
HR & Contract Management – Manages employee contracts, attendance tracking, and workplace policies.
Employee Benefits Administration – Provides health insurance, paid leaves, and other perks to keep employees engaged.
Onboarding & Background Checks – Screens and verifies candidates, ensuring a smooth hiring process.
Why Companies Choose Remotify as Their EOR Partner
Not all EOR providers offer the same level of expertise and service. Many lack deep knowledge of Philippine labor laws or fail to prioritize employee engagement—leading to compliance risks and low employee retention.
Remotify stands out by offering:
🔹 Expertise in Philippine Labor Laws – Ensuring full compliance with employment regulations, tax laws, and government filings.
🔹 Efficient Payroll & Tax Management – Handling payroll, tax deductions, and benefits processing with accuracy.
🔹 Strong Employee Engagement Programs – Creating a positive work culture to keep employees productive and motivated.
🔹 Quick Talent Acquisition & Onboarding – Assisting with job descriptions, background checks, and smooth onboarding.
🔹 Cybersecurity & GDPR Training – Educating employees on data protection to meet global business standards.
🔹 HR Support & Employee Benefits Management – Providing full-service HR solutions, from contract management to healthcare benefits.
Key Benefits of Expanding with an EOR in the Philippines
Companies that work with an EOR like Remotify enjoy:
🚀 Faster Market Entry – Start hiring in days instead of months.
🔍 Full Compliance & Legal Protection – No risk of labor law violations or tax penalties.
💰 Lower Operational Costs – Avoid the high expenses of setting up a local entity.
👨💻 Access to Top Filipino Talent – Hire skilled professionals across various industries.
📊 Flexible Scaling – Expand or reduce workforce size without administrative complexity.
🌍 Simplified Global Workforce Management – Manage employees in different locations with a single EOR partner.
Final Thoughts: The Smart Way to Expand into the Philippines
Expanding into the Philippines is a high-reward opportunity for global businesses, but the legal and administrative complexities can slow down growth.
By partnering with an Employer of Record in the Philippines, companies can legally hire Filipino talent, ensure compliance, and simplify payroll management—without setting up a local entity.
Remotify makes global expansion effortless by handling everything from employment Linkhouse contracts to payroll processing and employee engagement.
Ready to hire remote teams in the Philippines? Let Remotify take care of the hard work so you can focus on growing your business.